The Future of Distribution: Embedded Insurance - InsureTech Connect Asia

Embedded insurance is the future of how insurance and warranties will be distributed as it allows a high degree of responsiveness and adaptability to customer needs in a fast-changing world.

At Cover Genius, we enable the world’s largest digital companies to protect their global customers, at the point of sale or sign up. We partner with some of the largest companies across Asia, such as Shopee (the largest e-commerce platform in Southeast Asia and Taiwan), Booking Holdings, eBay, and Skyscanner (owned by Ctrip, one of the largest players in the Asian market).

Watch below as Arijit Chakraborty, Managing Director of SEA and India, addresses this shift in the distribution model.


Hello everyone, this is a privilege for me to be presenting at itc asia virtual conference. My name is Arijit Chakraborty. I head Asia for Cover Genius – the topic we are presenting today is the future of distribution embedded insurance. This is a very relevant topic and this is also what we do as our business. We believe that embedded insurance is a new way insurance and warranties are distributed because of the contextuality and also the flexibility customers can get while they are buying their primary product and services from their favorite online platform. We as a business enable the world’s largest digital companies to protect their global customers when they’re buying our primary product and service at the time of signup or at the time of point of sale, and at the same time we provide significant additional revenue stream for these digital platforms where the influence is leveraged. 

Cover Genius  is ranked as the fastest growing company in 2020 by Financial Times. We have secured large partnerships with players including Shopee, who are a leading Southeast Asia e-commerce company. We also have a partnership with Skyscanner, who is owned by Ctrip, also a reputable brand

in Asia, and we have global partnerships with Booking Holdings, eBay, Quickbooks, Wayfair and many others where we provide in-path contextual insurance solutions for the consumers. To support us in the deals we have also established relationships with various underwriters on a regional and global basis. 

Now, how do we do this embedded insurance? One is on the one master contract and our single API provides a seamless integration with the partners which can give you multiple products in multiple markets at the same time. Let me explain with an example: one of our clients, Shopee. If they want to launch a gadget insurance program across all their markets, typically what they will do is they will go to their individual business units who will then source an underwriter license in that particular market, work on a product where pricing complies with all the regulatory nuances in that particular market, and do individual integrations. For those markets to go live takes a lot of time for these insurance rollouts. In contrast to that what we do is we can provide a single API to these regional platforms and at the back we handle the end-to-end insurance program management, the insurance relationships and also the governance and compliance around it at the same time. 

The single API can provide you multiple products in multiple markets with the language capabilities. Thus, the pain point of working with individual underwriters and coming up with individual solutions per market is erased. That’s how we run businesses across in 60 countries and also in all 50 US states. 

There is a shift in the value chain, where previously people were buying from incumbent insurance companies and the traditional agency/broker model. That model has now shifted where people are visiting their favorite apps or stores which might be on the e-commerce side, travel, neobanks,  your logistics platform. The data we have done with shows that 60% of customers actually prefer to buy insurance from their favorite brands, rather than going to a third party website and sourcing and looking for insurance products. Another interesting data point is 48% of customers make online purchases of primary product and service if they see insurance and the insurance discovery happened during the purchase path or checkout. 

An example is if you take a laptop which is being sold on an e-commerce platform. One comes without protection, one comes with protection. Our studies say that there is a higher probability for the consumer to buy the laptop which comes with protection because what people are looking for is peace of mind, convenience and the right pricing. This is the value of embedded insurance. 

Our studies also show an increase in attachment rates because of the COVID-19 pandemic. We were able to obtain these findings through our data team using our BrightWrite analytics platform, and what we have seen is attachment rates were uneven in Singapore but in Korea it followed an upward trend. Similarly we saw in Hong Kong, it increased towards 100% attach rate, with Singapore and Korea experiencing attach rates of 200%.

This shows that COVID-19 has obviously accelerated uncertainty in the world and people are looking for a solution to cover the financial risk or the uncertainty which comes with buying primary products and services. The increase in attachment shows that awareness of the protection and insurance has also increased, and that’s the reason when you are booking a flight ticket now which comes with cancellation coverage, you are more likely to purchase this embedded protection or insurance. 

We are curating products which are relevant for that distribution partner and the ecosystem and then finding ways by which to earn analytics to provide customers the right coverage. These are the examples and press releases where Cover Genius has been featured, because we landed these partnerships with various digital distribution partners. An example is Skyscanner which is a recent partnership where we launched Covid protection, which is very much needed in the current situation of lockdown, quarantine and borders being closed – this sort of insurance plan is very relevant to the current current climate. Additionally, our logistics partners like ShipRush experience higher chances of failed delivery due to the contactless nature of it during COVID. Thus, we are coming up with various tailored solutions on the platform so that you reduce their financial risk by providing them the merchants with those protections. Similarly we are seeing higher attachment rates in the travel industry as well because of the uncertainty. 

So, the takeaway from these benefits and the attachment rates from what we see is embedded insurance is the future and also what I’m seeing is the mindset of the tech companies are also changing and evolving. 

They want to leverage insurance to protect their consumers and also to create a differentiation on their platform because it shows that they care for the customer and come up with consistent contextual products so that they can buy that insurance at that point of time rather than sourcing insurance to a third party website or through a conventional agency channel. That’s where I think the value chain of distribution shift is happening and we are very pleased that we are in the forefront on this particular   this particular shift. 

Feel free to reach out to me if you have any questions in relation to embedded insurance or an intro in general, and I would like to collaborate on any other opportunities you may have. I thank you very much for the time to hear me out in this session and I’ll see you soon on the other side of the conference. Thank you very much.